Rizal Commercial Banking (RCB) Q4 2024 earnings summary

Executive summary

• Gross income rose 6.8% year-over-year to P53.4B, with net interest income up 26.4% to P42.5B, driven by strong consumer lending and digital initiatives.

• Net income declined 22.1% year-over-year to P9.5B, impacted by higher impairment losses and lower other income.

• Total assets/resources reached P1.36T, up 9.8% from FY2023, with loans growing 14–17.2% and deposits up 6.9–7%.

• Customer count increased 27% to 4.7M, with digital engagement and AI-driven solutions enhancing customer experience.

• The bank issued USD400M in 5-year sustainability bonds and completed major systems migration for auto and housing loans.

Financial highlights

• Net interest margin improved to 3.9% from 3.4% in FY2023.

• Fee income grew 19.8% year-over-year to P8.5B; operating expenses rose 7.5% to P31.8B.

• Impairment losses increased 25.1% to P8.6B; provision for income tax surged 167.2% to P3.5B.

• ROE dropped to 6.0% from 9.5%; ROA fell to 0.8% from 1.1% year-over-year.

• Loans and receivables (net) grew 14% to P742.5B; deposit liabilities rose 7% to P1.02T.

Outlook and guidance

• Management highlights continued focus on digital transformation, AI-driven growth, and expanding consumer lending.

• Emphasis on sustainability, with P126.7B in eligible sustainable portfolio and 65% of sustainability bonds allocated to green projects.

• BSP rate cuts in 2024 are expected to ease funding costs, with focus on growing low-cost deposits and higher-yielding loans.

• The bank plans further independent validation of its ECL models and ongoing digital transformation.